Step Change - DMP any good?

Monkeyballs

Hey all,

I have recently contacted Step Change to discuss a DMP and it seems like this is going to be the best option which makes me feel a little more comfortable about my current situation...

I was wondering though, has anyone got any experience of Step Change in relation to Payday lenders?

I have never missed more than the occasional repayment on my debts but they aren't really getting any smaller - hence looking for help but I'm worried about PDL's hassling me and the possibility of having to change banks?

Any (helpful and friendly) advice, comments and suggestions would be greatly appreciated :-)

moohound

You will need to change banks if any of your lenders are linked with your bank. otherwise they can exercise their right to off set your debts against any accounts in your name. So if you ave an overdraft it will go on the DMP and you will have to move banks.

I have no experience with payday lenders so I cant help you there, but I do think they have something called continuous payment authority which will need to be sorted out if you stay with your own bank.

Good Luck with it if you decide it is best for you.

Monkeyballs

Hi Moo,

Thanks for the reply :-) I bank with Barclays and have a £100 OD and a Barclaycard (£1950) but they are the only debts linked...

I have heard of continuous payment authority, when I spoke to Step they never mentioned any issues and I asked straight out but I guess time will tell.

Cheers again, MB

BlueIsTheColour

Here is info about possible CPA from the Stepchange website that might help? http://moneyaware.co.uk/2012/07/how-to-cancel-a-continuous-payment-authority-cpa-on-a-payday-loan/

Stepchange used to be CCCS and are a good organisation to use as there is no charge to you and lenders 'prefer' customers in debt to use these or other free organisations as opposed to those companies out there who charge a 'management fee' to probably do less than Stepchange will do for free.

If they have recommended a DMP then personally it would be something I would do.

Monkeyballs

Hi Blue,

That is useful thanks :-)

I'm actually half tempted to just let the PDL's come out at the end of this month as my pay is enough to cover them and then I'm only left with the standard credit cards and unsecured loan to contend with...

Appreciate that this might sound like a "cowards way out" but it will mean that the lenders who are most likely to cause problems are out of the way and reduces the number of creditors by a third?

Any thoughts on this as I just want to get my debts sorted as smoothly and as hassle free as possible as I have been ill with stress recently and could do without being hounded!

Thanks, MB

beth3735

I would do as you last stated and get the PDL out of the way in 1 chunk so that you have less hassle and only the normal companies to deal with who are more than likely going to be better to deal with than the PDL companies.

Monkeyballs

Hi Beth,

Very very tempted... It will mean I have a lean month but I think I'd rather have that than the hassle...

Cheers, MB

c85

hi,
i had 3 payday loan creditors when i entered my dmp.. wonga froze interest immediatly as did payday uk.. they both ccepted my new reduced monthly payment.. quickquid sold the debt straight to mackenzie hall who then also accepted my monthly payment. these have been the easiest creditors to deal with to be honest. why dont tou stash that money into an emergency fund and start the dmp with the payday loans? hope everything works out however you decide. good luck with your dmp stepchange are great.

Suseka

Looks like you have had sound advice already and I think the choice regarding the PDL's will be yours to make. If it were me I would lump them in with the DMP, but I don't have PDL's.

You will, however, have to change your bank because of the credit card debt, otherwise Barclays will offset income against that and you'll be stumped. So perhaps now is a good time to look into an alternative and I've heard that the co-op cashminder account is a good basic bank account.

I (and my OH) both banked with Barclays, but quite a few of our debts were linked to them, so we had no option other than to switch all our DDs across to a new account and close it. OH was a bit upset at that, because he was quite proud of the fact that he held the same bank account for 30+ years. Was his first and only until now.

But there's no such thing as loyalty when you owe financial institutions money - so don't be fooled into thinking Barclays will do the decent thing.

Hope the DMP gets up and running swiftly for you.

Monkeyballs

Thanks all! Kind words and advice are very much appreciated :-)

Monkeyballs

Aloha!

Not sure if anyone is going to be reading this but I felt the need to post it anyway...

I have just called and spoken to each of Wonga, Cheque Centre and the Moneyshop to request that CPA is cancelled as I no longer authorise it and all three were actually very accommodating and have cancelled CPA, and agreed to place my account on hold for 30 days while the plan is put in place and they are contacted by StepChange.

Huge relief as these were the guys I most dreaded as the majority of posts on this forum are negative.

If I have any advice to give, it's be polite and have your client ref. which your DMP provider supplies you with.

I still expect some agro along the way to getting this all set up and in place but these folk have been very understanding so far! Who knew!!!

Take care all :-)

MB